Athens News Agency: Daily News Bulletin in English, 01-10-25

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From: The Athens News Agency at <http://www.ana.gr/>

CONTENTS

[01] PM stresses efficiency, cooperation at cabinet's maiden meeting

[02] New ministers assume posts following gov't reshuffle

[03] Chamber of Commerce and Industry on government reshuffle

[04] ND requests details of last actions by previous ministers

[05] Athens, Budapest focus on EU expansion, Cyprus' prospects

[06] State Department's Cyprus coordinator in Athens

[07] Constantopoulos to visit Sweden

[08] Athens mayor denies plans to seek new term

[09] OSCE observers due in Greece en route to Kosovo

[10] UN flag raised on Acropolis to mark United Nations Day

[11] SAE to hold world conference on Dec. 5-12

[12] Romanian press release on nat'l armed forces day

[13] Young Parliamentarians conference to begin on Rhodes

[14] New finance minister to keep growth, stability policies

[15] Greek trade assets up 22.5 percent in 2000

[16] Little room for loan rates to fall further, analysts say

[17] IFC backs investment by Hellenic Cables in Romania

[18] World tourism trade fair in Thessaloniki next month

[19] Greek stocks fall on profit taking

[20] Head of Athens Olympics Committee briefs main sponsors

[21] Panathinaikos qualifies for second stage of Champions League

[22] Spokesman terms visit to Cyprus on Thursday by Prodi, Verheugen as 'very important'

[23] Government appears cautious regarding efforts underway to resume peace talks

[24] Government describes as positive EU statement on UN-led Cyprus peace process

[25] Government condemns moves by Denktash to push Turkish Cypriots towards emigration

[01] PM stresses efficiency, cooperation at cabinet's maiden meeting

Athens, 25/10/2001 (ANA)

The new government team arising from the cabinet re-shuffle announced on Tuesday was sworn in earlier in the day and met for the first time at 12:30.

During the next three years, he told the ministers, the government had to carry out its "Greece 2004" plan and its "Pact for a Strong Society" as it had pledged to do.

"This plan will be the government's framework until 2004. I want it to be completed as a priority," Simitis said, and stressed that the government would be judged on its efficiency in completing this plan. He also pointed out that the government had to be ready to deal with new policies and actions that might arise over the course of the next three years.

The aim of the reshuffle, Simitis added, was to give emphasis to speeding up government action, social dialogue and cooperation and to the support of society.

The premier urged ministers to focus on the big picture and cooperate with each other to speed up the pace of the government's work, pooling resources and coordinating actions on issues where their briefs overlapped.

"You are not only ministers of your ministries but also ministers of a government that is collectively carrying out its work," he said, while pointing out that improving the government's effectiveness would largely depend on such cross-ministerial cooperation.

Simitis particularly stressed the importance of controlling public-sector finances and said this was the responsibility of all.

"I want to draw your attention to the need to not only control spending but also the way in which funds are spent. We are constantly being judged by the Greek people on the way that we handle the Greek taxpayer's money," Simitis said.

Commenting on the preparations for the Olympic Games in 2004, Simitis noted a minister or deputy minister had been assigned to each ministry to monitor their progress, with time at their disposal to deal with this issue.

Lastly, he urged ministers to maintain the government's presence in Parliament and be on hand to answer the arguments of the opposition parties. It was also important, he added, that the work of the individual ministries be adequately publicized and promoted.

"We need to explain our policies and transmit our message. A minister or deputy minister that works incessantly but does not present his work, so that it goes unnoticed by all except a few, is not adequately carrying out his duties," the premier noted.

New Cabinet the biggest ever under Simitis � Profile: One year, six months and 10 days after the government of prime minister Costas Simitis that emerged from the April 2000 general elections was sworn in, and following the 6th PASOK Congress at which Simitis was re-elected to the party helm with 71.16 percent, the premier saw his biggest Cabinet, comprising 19 ministers, one alternate minister and 28 deputy ministers sworn in on Wednesday.

The new Cabinet, which numbers 49 members, has six members more than the previous one, of whom 13 are new faces to the government against 20 in the previous formation.

The new government has greater parliamentary representation by four electoral districts, number 29 districts against 25 in the previous formation.

Also, the average age of the new government's members is down at 50 years old from 51.7, the number of women in the government remains at four, and it has 50 percent fewer non-parliamentarians than the previous government (two as against four, namely alternate foreign minister Tassos Giannitsis and education and religious affairs minister Petros Efthymiou).

The new government -- emerging from the third reshuffle by Simitis since he first took over as prime minister in 1996 -- is the largest in number of Simitis' Cabinets and has the lowest average age, with the oldest member being the prime minister himself, at 65, and the youngest being culture deputy minister Nassos Alevras at 38, with a total of 34 members born in or after 1950.

And although the number of women in the government has remained at four, the proportion has been reduced to 8.16 percent from 9.3 percent in the previous Cabinet due to the increase in the number of overall members.

It is the first time in office for two of the women (education and religious affairs deputy minister Eleni Kourkoula and health and welfare deputy minister Elpida Tsouri), while Kourkoula is the first actress in a Simitis government.

Further, the number of university professors has dropped from six in the previous government to just one in the new formation, while, with respect to careers, there are 11 lawyers, 7 engineers, 6 economists and 5 physicians in the new Cabinet.

[02] New ministers assume posts following gov't reshuffle

Athens, 25/10/2001 (ANA)

A handful of similar brief ceremonies occurred at other ministries the same day, 24 hours after Prime Minister Costas Simitis announced a government reshuffle.

Laliotis will take up his new duties as PASOK's secretary, whereas Papandreou was shifted from the interior ministry and public administration ministry.

"I'm very touched and happy today because I'm turning over the ministry to a friend of some 30 years," Laliotis said, adding that his most difficult time at the post over the past eight years was the period following the devastating earthquake that hit the greater Athens area in September 1999.

On her part, Papandreou praised Laliotis' work at the ministry.

Earlier, at the interior ministry, Papandreou referred to the sectors that were promoted during her tenure, in briefs remarks prior to handing over the ministry's helm to Costas Skandalidis, who until last week was ruling PASOK's secretary.

In his response, Skandalidis emphasized the need for collective and hard work by the new Cabinet.

The veteran politician from Kos returns to the interior ministry after seven years.

The two outgoing deputy ministers, Leonidas Tzanis and Costas Kaiserlis, were also present at the ceremony, as were their replacements, Stavros Benos and Lambros Papademas.

At the press and mass media ministry, outgoing minister Dimitris Reppas greeted his replacement, Christos Protopapas, before leaving to assume the crucial labor and social insurances portfolio.

Protopapas assumes the high-profile ministry after being promoted from deputy labor minister, whereas he initially was elected to Parliament after a lengthy career as a labor union leader.

Among his parting comments as press minister and government spokesman, Reppas said he learned to "count time not by my watch, but by heartbeats."

At the agriculture ministry, George Drys -- formerly the deputy finance minister -- took over the ministry from George Anomeritis, who earlier assumed the merchant marine ministry portfolio.

Drys focused on promoting initiatives funded through the Third Community Support Framework (CSF) and preparing for Greece's EU presidency in 2003.

Yiannos Papantoniou takes office as defense minister: Newly-appointed Defense Minister Yiannos Papantoniou assumed his duties on Wednesday, following a ceremony attended by his predecessor Akis Tsohatzopoulos, and pledged that the new civil leadership will "build on the valuable work already done".

Praising the work accomplished by Tsohatzopoulos, Papantoniou said the continuation of this policy will have three targets: The further strengthening of the armed forces' operational capacity in the framework of the strategic defense revision.

Secondly, the continuous effort to upgrade the armed forces' human potential, adding that human potential is a crucial factor in increasing the armed forces' effectiveness.

Thirdly, the full and effective implementation of all armaments programs decided collectively by the government. He said at this point that thanks to the strength of the economy the government succeeded in funding considerable armaments programs and reiterated that all collective decisions will be carried out.

On the question of the target of having the armed forces' operational cost below 4 percent of GDP, Papantoniou said it is an ambitious target which will be observed by all despite difficulties appearing.

Papantoniou said everything will be implemented swiftly and effectively and added that he looks forward to substantive cooperation and substantive understanding with the military leadership to enable all together to struggle for a more powerful and effective Greece.

On his part, Tsohatzopoulos congratulated relevant services for the completion of 90 percent of the armaments program covering the 1996-2001 period, adding that the new civil leadership will have the responsibility and pleasure for the implementation of the armaments program for the 2001-2005 period.

He also referred to military cooperation agreements signed during his period of office with various countries such as China, Russia, Uzbekistan, Armenia, Georgia, Iran, Israel and Syria, apart from eastern European and Balkan countries.

Tsohatzopoulos took the opportunity to congratulate the military leadership, the members of the armed forces and the civil staff for their "indefatigable efforts for the success of the country's defense and security policy".

The ceremony was also attended by outgoing Deputy Defense Minister Dimitris Apostolakis and the new Deputy Defense Ministers Loukas Apostolidis and Lazaros Lotidis and the armed forces' military leadership.

Justice ministry turned over to Petsalnikos: The justice ministry changed hands on Wednesday, with out-going minister Mihalis Stathopoulos turning over the reins to new Justice Minister Philippos Petsalnikos.

Stathopoulos, who doesn't have a post in the new government team appointed by Simitis after a sweeping cabinet reshuffle on Tuesday, said that his time in the ministry had been chiefly stamped by political issues brought to the fore by events, such as the identity-card crisis and the fight against organized crime, rather than planned programs.

He stressed that the change in the ministry's leadership would not affect the government's stance on the identity-card issue, which he said was a matter of principle.

Petsalnikos said his main priority while at the justice ministry would be to safeguard human rights and individual freedoms.

Other goals would be to speed up the workings of the judicial system, improve prison policy, modernize legislation to conform to laws in Europe and introduce computerized systems.

[03] Chamber of Commerce and Industry on government reshuffle

Athens, 25/10/2001 (ANA)

This was stated by EBEA President Yiannis Kapralos and secretary general Drakoulis Fountoukakos on the occasion of the government reshuffle, adding that the business world is not interested in persons but in policies applied to improve the economic environment for entrepreneurs and small and medium-size enterprises (SMEs) in particular.

The Federation of Exporters of Northern Greece sees "positive indications" in the composition of the new government formation and links them to the positions and requests it had put to the government.

Among others, positive points it recognizes in the new government are the transfer of the country's economic diplomacy from the responsibility of the National Economy Ministry to the responsibility of the Foreign Ministry, the responsibility of implementing the 3rd Community Support Framework (CSF) remaining with the same deputy minister, resulting in the avoidance of more precious time being lost, and the existence of seven deputy ministers at seven ministries who are responsible for each ministry's projects concerning the 2004 Athens Olympic Games.

Meanwhile, the National Confederation of Greek Commerce believes that the new government will be judged by the effectiveness of its work.

The major outstanding problems of the Greek economy and society can wait no longer and, consequently, the new government is not entitled to the usual period of grace, an announcement said, since most ministers have a long period of office in government and a continuous presence at ministries.

[04] ND requests details of last actions by previous ministers

Athens, 25/10/2001 (ANA)

The request was made in the form of a question tabled in Parliament and signed by 49 main opposition MPs.

According to the MPs, the Constitution and rules of law dictated that ministers and deputy ministers should restrict their activities over that time to simple management of everyday affairs and the handling of extremely urgent situations.

According to sources, meanwhile, during a meeting with ND sector coordinators earlier on Wednesday, ND leader Costas Karamanlis said the new cabinet appointed by Prime Minister Costas Simitis fell short of the mark and would not be able to meet the demands of Greek society.

The same sources said that he also criticized Simitis for "re-cycling" the same tired ministers and attempting to present this as a new start.

The ND leader added that international trends pointed to a need for flexible government compositions.

Finally, Karamanlis said ND cadre Yiannis Papathanasiou would be the party's rapporteur in the debate on the budget in Parliament.

[05] Athens, Budapest focus on EU expansion, Cyprus' prospects

BUDAPEST, 25/10/2001 (ANA - A. Makridis)

Following talks with visiting Greek counterpart George Papandreou on Wednesday, Hungarian Foreign Minister Janos Martonyi said his government backs Cyprus' entry into the 15-nation bloc even without a prior solution to the island republic's long-standing political problem.

He clarified, though, that "we believe the possible failure of negotiations, however, should not block or delay the EU's expansion."

Regarding Cyprus' candidacy, the Hungarian minister said the "issue has been solved at the Helsinki summit ... It is obvious that both sides on Cyprus must make every effort towards an agreement. If this isn't achieved then the Helsinki text provides a solution: An option exists for a portion of the island republic to conduct negotiations; (and) to finalize an accession agreement on behalf of the entire island," he stressed

On his part, Papandreou reiterated Athens' support for Hungary's EU accession, while in terms of the divided island republic, the Greek FM said a "view holding that solution to the Cyprus problem is not a condition for Cyprus' EU accession isn't just a Helsinki decision, but is accepted by the majority of European public opinion."

Additionally, Papandreou praised the Budapest government's course in approaching a United Europe.

In referring to the EU's pending enlargement vis-a-vis the dastardly terrorist attacks last month in the United States, Martonyi said the "tragedy of Sept. 11" must lead to an acceleration of the Union's expansion.

Papandreou said the unprecedented terrorist acts in New York and Washington confirmed the need for EU-wide solidarity and cooperation to quash terrorism. Along these lines, he said EU expansion is imperative in order to bolster the Union's security policy.

Greek FM concludes visit to Hungary: Greece's Foreign Minister George Papandreou concluded his visit here on Wednesday night with meetings with Hungary's Socialist Party leader Kovac and the party's shadow prime minister Medgiezi.

The meetings were of a courtesy nature and the discussions evolved round mutual party interests, given that the Socialist Party is contesting power in the elections in Hungary in May.

Papandreou returns to Athens on Thursday, to continue a visit to Morocco.

[06] State Department's Cyprus coordinator in Athens

Athens, 25/10/2001 (ANA)

While in Athens, Weston met with the director of the foreign ministry's Cyprus office and briefed him on the results of his visit to Ankara.

The two men also discussed the latest developments in the Cyprus problem following the refusal of the Turkish-Cypriot side to participate in a new round of UN-sponsored Cyprus proximity talks in New York.

[07] Constantopoulos to visit Sweden

Athens, 25/10/2001 (ANA)

During his visit to Sweden, which ends on Saturday, Constantopoulos is scheduled to meet the leader and other officials of Sweden's ex-Communist Left Party, which is one of the largest in Europe.

Their talks are to focus on current international developments and coordinating the forces of the European Left to develop an anti-war movement, among others.

While in the city, Constantopoulos also plans to meet the federation of Greek communities in Sweden, address a meeting of Coalition supporters in Stockholm and visit the Palme Institute.

[08] Athens mayor denies plans to seek new term

Athens, 25/10/2001 (ANA)

Avramopoulos, who was speaking in Patras, western Greece, which he visited to inaugurate his party's offices, said scenarios of his participation in the next municipal elections to seek a new four-year term as mayor were rumors.

He let it be understood that he will not pursue cooperation with other political forces in the country in general elections in an effort to register his party's real strength. He also did not rule out the possibility of early general elections and said his party will be ready for such an eventuality as well.

[09] OSCE observers due in Greece en route to Kosovo

Athens, 25/10/2001 (ANA)

The OSCE observers will remain in Kallithea, Halkidiki for two or three days where they will be briefed by experts on the conditions prevailing in Kosovo and the problems they may be confronted with. The observers will then head for Pristina.

The elections in Kosovo are being conducted under the supervision of the international community for the establishment of an 120-member parliament which in continuation will elect a government and president of the protectorate.

According to all indications only Albanians will take part in the elections as the remaining Serbs, numbering about 120,000, have declared their determination to abstain from voting, claiming that there are no fundamental security conditions for them, due to the persecutions they are experiencing by Albanian extremist elements.

[10] UN flag raised on Acropolis to mark United Nations Day

Athens, 25/10/2001 (ANA)

[11] SAE to hold world conference on Dec. 5-12

Athens, 25/10/2001 (ANA)

Initially, and following the terrorist attacks in the United States, there were considerations for a postponement. However, Helexpo's managing director announced at a press conference on Wednesday for the 17th Philoxenia tourism and holiday exhibition that the conference will proceed normally on the set dates and that the relevant agreement between SAE and Helexpo for use of the facilities was signed on Tuesday.

The development was welcomed by hoteliers in Thessaloniki since the holding of the conference means that about 1,100 rooms will be booked for a period of one week.

[12] Romanian press release on nat'l armed forces day

Athens, 25/10/2001 (ANA)

"This year the celebration of our armed forces has a special significance due to the focus on the professional quality factors imposed on the military institution's restructuring and modernization," the press release reads.

During the Second World War roughly 800,000 men of the Romanian armed forces were killed, wounded or declared missing in action in the struggle for democracy, the press release notes, while adding that over the past 10 years Romanian military units participated in OSCE, NATO and United Nations operations in Africa and the Balkans.

[13] Young Parliamentarians conference to begin on Rhodes

Athens, 25/10/2001 (ANA)

The conference was organized by the Council of Europe's international institute for democracy and will run until Saturday, while it will focus on ways to combat trafficking in human beings, illegal immigrants and drugs in the Mediterranean.

The conference will also discuss the role of national parliaments in the context of these efforts and the adequacy of existing legislation for dealing with these phenomena in the region.

CoE parliamentary assembly president Lord Russell-Johnston will address the conference on the first day, as will Greek Parliament Speaker Apostolos Kaklamanis, while Foreign Minister George Papandreou might be delivering the opening address be-fore the conference begins.

[14] New finance minister to keep growth, stability policies

Athens, 25/10/2001 (ANA)

"I can assure you that economic policy will move in the same direction in order to achieve growth, prosperity, a rise in unemployment and social equity," Christodoulakis told a news conference at his first day in the ministry.

In a sweeping cabinet reshuffle on Tuesday, his predecessor Yiannos Papantoniou was awarded the defense portfolio, with Christodoulakis leaving his post as development minister to be replaced by Akis Tsohatzopoulos, who formerly held the defense portfolio.

Christodoulakis said he would work to boost competitiveness, improve the trade balance, attain real convergence with the European Union, and advance structural changes that would make the economy more flexible in a troubled global environment.

The minister said he also planned to improve the operation of financial markets through the creation of fair competition control mechanisms, which, in turn, would spur more investment.

[15] Greek trade assets up 22.5 percent in 2000

Athens, 25/10/2001 (ANA)

An ICAP survey said that the commerce sectors' total assets rose 22.5 percent in 2000 to 10.6 trillion drachmas, with mixed fixed assets, including run and holdings increased by 28.2 percent to 3.6 trillion drachmas over the same period.

The sector's equity capital totalled 2.9 trillion drachmas, up 22.9 percent in 2000.

Sales rose 20.4 percent to 15.7 trillion drachmas, with pre-tax profits in the commerce sector falling to 485 billion drachmas, from 557 billion in 1999, reflecting higher financial spending and worsening non-operational results due to a sharp fall in the Athens bourse.

The transport sector accounted for 15.6 percent of total capital, followed by supermarket-department stores (9.9 percent), home-professional appliances (7.0 percent), computers-office equipment (6.9 percent) and clothing (6.3 percent).

The transport, computer and pharmaceuticals-cosmetics were the most profitable sectors, the survey said.

[16] Little room for loan rates to fall further, analysts say

Athens, 25/10/2001 (ANA)

Credit card rates in Greece are already low in relation to those offered by major banks in Europe and the US, despite complaints by domestic consumers, the bankers said.

They added that they were unwilling to launch a new wave of rate cuts, especially in mortgages, as levels were low in comparison to the euro zone.

[17] IFC backs investment by Hellenic Cables in Romania

Athens, 25/10/2001 (ANA)

The funding will help to complete an investment plan for the subsidiary to raise production capacity to 75,000 tones annually, Hellenic Cables said in a statement from Athens.

[18] World tourism trade fair in Thessaloniki next month

Athens, 25/10/2001 (ANA)

Philoxenia is arranged by Helexpo, the state trade fair organizer, working with the Greek National Tourism Organization.

Among events to be held as part of the fair are a two-day conference on eco-tourism organized by the development ministry, and seminars on tourism arranged by a domestic trade group of travel operators.

[19] Greek stocks fall on profit taking

Athens, 25/10/2001 (ANA)

The general index ended 0.58 percent lower to 2,391.34 points, with turnover a disappointing 28.8 billion drachmas, or 84.5 million euros.

The Investment and Textiles sectors suffered the heaviest percentage losses (1.99 percent and 1.55 percent respectively), while the Metals and Retail sectors scored the biggest percentage gains (0.72 percent and 0.05 percent respectively).

The FTSE/ASE 20 index for blue chip and heavy traded stocks ended 0.71 percent lower, the FTSE/ASE MID 40 index eased 0.50 percent and the FTSE/ASE SmallCap 80 index fell 0.64 percent.

Broadly, advancing issues outnumbered declining ones by 244 to 81 with another 35 issues unchanged.

Bond Market Close: Prices rise in brisk trade: Bond prices in the domestic secondary market on Wednesday finished higher in heavy trade focusing on 20-year paper.

The Greek benchmark 10-year bond showed a yield of 5.09 percent, and the yield spread over German bunds was 43 basis points.

Turnover through the central bank's electronic system totalled 1.4 billion euros.

Buy orders accounted for over half turnover.

Derivatives Market Close: Equity futures end lower: Equity futures on the Athens Derivatives Exchange on Wednesday ended at a greater discount than the previous close after the main market was unable to retain gains made early in the session, traders said.

The underlying FTSE/ASE-20 index for heavily traded stocks and blue chips shed 0.71 percent; and the underlying FTSE/ASE-40 for medium capitalization stocks lost 0.50 percent.

[20] Head of Athens Olympics Committee briefs main sponsors

Athens, 25/10/2001 (ANA)

The meeting was the first of a series to be held every two months in which the sponsors will be informed of progress in preparations for the games, to help them make better use of the opportunities stemming from sponsorship.

Also discussed at the meeting was the creation of a 2004 Olympics sponsors' club to strengthen ties between the committee and all sponsors.

The organizing committee has so far raised 72.7 billion drachmas from seven out of a total of 40 sponsorships, representing 107 percent of the original target. The remaining sponsorships have yet to be tendered.

[21] Panathinaikos qualifies for second stage of Champions League

Athens, 25/10/2001 (ANA)

Panathinaikos' goals were scored by Emmanuel Olisadebe in the 31st minute and Michalis Konstantinou in the 61st.

Panathinaikos is leading Group C with 12 points in five matches and will finish top of the group regardless of the result of its remaining match away against Real Mallorca of Spain next week.

The Greek team has beaten Arsenal of England 1-0 in Athens, Real Mallorca 2-0 in Athens, Schalke 04 2-0 away and lost 2-1 away to Arsenal.

[22] Spokesman terms visit to Cyprus on Thursday by Prodi, Verheugen as 'very important'

NICOSIA, 25/10/2001 (CNA/ANA)

"I have no doubt that this visit will give a new impetus to our accession effort. High level consultations will review the situation and determine ways to make headway within the defined timetable to allow us to close more chapters in our negotiations with the EU," he said.

The spokesman expressed the conviction that the visit will "reaffirm the resolve of the EU to persist with the letter and the spirit of its decisions in Helsinki which disconnect the political solution from accession. "The Helsinki summit in December 1999 said a political settlement would facilitate accession but it is not a precondition for it.

[23] Government appears cautious regarding efforts underway to resume peace talks

NICOSIA, 25/10/2001 (CNA/ANA)

Government spokesman Michalis Papapetrou said on Wednesday all indications are that the Turkish side insists on its intransigent positions and has not given its consent to the resumption of talks, something that would render anybody "pessimistic."|

"The attitude of the Turkish Cypriot leader Rauf Denktash and Ankara essentially torpedo any chances for a successful outcome of Weston's visit to Cyprus," Papapetrou said, only hours before the US diplomat was due on the island.

He said the basis of the talks is already defined, the invitation delivered and what remains to be seen is the consent of the Turkish side to the resumption of talks.

The Turkish side rejected a UN invitation to talks in early September in New York. President Glafcos Clerides accepted the invitation.

The UN Security Council said the response of the Turkish side was unjustified and expressed disappointment that the talks did not resume.

"Since there is no indication that this consent is forthcoming, the entire effort remains in a deadlock," Papapetrou said.

Replying to questions, he said the government considers as "genuine and substantive" the efforts made by the US and others to bring the Cyprus question to the forefront, after the terrorist attacks in the US.

[24] Government describes as positive EU statement on UN-led Cyprus peace process

NICOSIA, 25/10/2001 (CNA/ANA)

"The government considers the statement by the Belgian EU presidency extremely important and positive in that it adopts a statement by the UN Security Council in late September which considers the Turkish side responsible for not responding to an invitation to peace talks by the UN Secretary General," government spokesman Michalis Papapetrou said here on Wednesday.|

The EU statement, he said, describes the framework of a solution which should be in line with UN Council resolutions.

"This is a very strongly worded statement which satisfies the government," he said.

The EU expressed support for the Security Council statement of September 26, in particular for the disappointment expressed at the refusal of the Turkish side to take part in the meeting of September 12 in New York.

The EU said it continues to back unreservedly UN Secretary General's efforts to resume, without preconditions, the search for a comprehensive and lasting settlement in conformity with the relevant Security Council resolutions.

Turkish Cypriot leader Rauf Denktash, backed by Ankara, withdrew from the UN peace talks last year and in early September he rejected an invitation to talks in New York, claiming the ground was not prepared and demanding recognition of his illegal regime in Turkish occupied Cyprus.

Invited to comment on the EU statement that all parties must work to find a settlement before the end of the accession negotiations, Papapetrou said "this is a very correct standpoint and coincides with our position."

The government, he added, wishes to see a reunited Cyprus join the EU and allow all Cypriots, Greek and Turkish, to benefit from it but if this is not achieved by the time of accession, Cyprus should not be penalized for it or held hostage to Turkish intransigence.

The EU decided in December 1999 that a political settlement would facilitate accession but it is not a precondition for it.

[25] Government condemns moves by Denktash to push Turkish Cypriots towards emigration

NICOSIA, 25/10/2001 (CNA/ANA)

Government spokesman Michalis Papapetrou said Denktash's threats to imprison Turkish Cypriots in possession of passports issued by the Republic of Cyprus are "beyond description" and said instead the Turkish Cypriot leader should be taking measures to improve the dire economic situation in occupied Cyprus.

"We condemn this indescribable behavior because in spite of decisions by the European Court of Human Rights, Denktash proves once more that he continues to violate human rights," Papapetrou said, recalling that the Court established that human rights in the island's Turkish occupied areas are violated by Turkey and its subordinate local administration.

Denktash is leading the Turkish Cypriots to desperation and the economy is getting from bad to worse because he has failed to tackle the real cause of the problem, which is the Turkish occupation and the link of the economy of the occupied areas to that of Turkey, the spokesman explained.

"Instead of trying to hit the nail on the head and take measures to incorporate the economy of the Turkish Cypriots with the thriving Cypriot economy, Denktash and his aides are trying to cut off completely the Turkish Cypriots from the Republic of Cyprus," Papapetrou said.

He noted that Denktash is now threatening them with imprisonment and a big fine because he cannot persuade them that they are not citizens of the Republic and that they should not be in possession of Cypriot passports.

"This is yet another case of human rights violation of the Turkish Cypriots," he said.

Turkish Cypriot press reports said the illegal regime intends to enact "legislation" providing for a five-year jail sentence and a big fine for those in possession of passports issued by the government of the Republic. There has been a marked increase in the number of Turkish Cypriots applying for a passport of the Republic of Cyprus, a move many considered linked to the Republic's expected membership of the European Union.

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